Questions and Answers
What is the purpose of using the Boston matrix in marketing strategies?
To assess whether the business has a balanced product portfolio.
Why are cash cows important for businesses?
To generate funds that can be used for R&D, new product development, entering new markets and marketing for different products.
What is the recommended action for dogs in a business's product portfolio?
To sell them off as they drain the business's resources while not generating sufficient revenue.
What is the recommended action for question marks in a business's product portfolio?
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What is the purpose of cash cows in a business's product portfolio?
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What is the recommended action for stars in a business's product portfolio?
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What is the recommended action for dogs in a business's product portfolio?
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What is the purpose of using the Boston matrix in marketing strategies?
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What is the recommended action for question marks in a business's product portfolio, according to the text?
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What is the recommended action for stars in a business's product portfolio, according to the text?
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What is the recommended action for dogs in a business's product portfolio, according to the text?
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What is the purpose of using the product life-cycle and product portfolio together in marketing strategies, according to the text?
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Why are cash cows important for businesses, according to the text?
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Study Notes
Boston Matrix in Marketing Strategies
- The Boston matrix is used to evaluate a business's product portfolio and identify opportunities to grow and optimize resources.
- It helps businesses allocate resources effectively by categorizing products into four quadrants: stars, cash cows, question marks, and dogs.
Product Portfolio Quadrants
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Stars: High-growth, high-market-share products with strong potential for future growth.
- Recommended action: Invest heavily to maintain and increase market share.
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Cash Cows: Low-growth, high-market-share products with a stable cash flow.
- Recommended action: Maintain and harvest cash flow to invest in other products.
- Importance: Provide a stable source of revenue and cash flow for the business.
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Question Marks: Low-market-share, high-growth products with potential for future growth.
- Recommended action: Invest to increase market share and potentially become stars.
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Dogs: Low-market-share, low-growth products with little potential for future growth.
- Recommended action: Divest or eliminate to optimize resources and focus on more promising products.
Product Life-Cycle and Product Portfolio
- Using the product life-cycle and product portfolio together helps businesses evaluate products throughout their life cycle and make informed decisions about resource allocation.
- This integrated approach enables businesses to identify opportunities to grow, optimize, and eliminate products, ultimately leading to a more effective marketing strategy.
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